THE GENESIS EMERGING MARKETS, LIMITED PARTNERSHIP
INTERIM REPORT FOR THE SIX MONTHS ENDED 30TH JUNE 2013 (Unaudited)
The Genesis Emerging Markets, Limited Partnership
CONTENTS Page Introduction .................................................................................................................................................. 1 Schedule of Investments ............................................................................................................................... 2 Statements of Assets and Liabilities ............................................................................................................. 9 Statements of Operations ........................................................................................................................... 10 Statements of Changes in Partners’ Capital................................................................................................ 11 Statements of Cash Flows ........................................................................................................................... 12 Notes to Financial Statements .................................................................................................................... 13 Notional Units ............................................................................................................................................. 16 Performance Record ................................................................................................................................... 17 Administration ............................................................................................................................................ 19
The Genesis Emerging Markets, Limited Partnership
INTRODUCTION
OBJECTIVE To provide participants with a broadly diversified means of investing in developing countries and immature stock markets, and thus to provide access to superior returns offered by high rates of economic and corporate growth, whilst limiting individual country risk.
STRUCTURE The Genesis Emerging Markets, Limited Partnership (the “Partnership”) has been established to permit investors to commingle a portion of their investments.
INVESTMENT MANAGER AND SUB-ADVISER Genesis Asset Managers, LLP is the Investment Manager to the Partnership and Genesis Investment Management, LLP acts as Sub-Adviser.
INVESTMENT APPROACH The investment process aims to identify those companies best able to exploit emerging market growth opportunities and which are found to be trading at an attractive discount to their assessed intrinsic value.
SUBSCRIPTIONS Deposits may be made into the Partnership at monthly intervals subsequent to each valuation day in accordance with the terms of the Private Offering Memorandum.
WITHDRAWALS Subject to appropriate notice being given, withdrawals may be made from the Partnership at monthly intervals subsequent to each valuation day in accordance with the terms of the Private Offering Memorandum.
1
The Genesis Emerging Markets, Limited Partnership
SCHEDULE OF INVESTMENTS as at 30th June 2013 (unaudited)
Investments in Securities
Industry
Number of Shares
Cost US$000
Fair Value as a Percentage of Partners' Fair Value Capital US$000 (%)*
Common Equity and Equity Related Stocks Argentina (2012: 0.41%) Ternium ADR
Materials
316,709
6,973
Austria (2012: 0.46%) Vienna Insurance Group
7,167 __________ 7,167
0.50 ______ 0.50
Financials
132,888
7,038
6,164 __________ 6,164
0.43 ______ 0.43
1,645,200 2,990,884 1,584,848 370,904 93,242 809,400
8,009 31,028 15,735 5,242 4,109 11,581
7,045 18,603 9,721 4,592 4,204 10,457
231,550 1,616,277
1,580 6,383
3,016 6,068
182,782
5,818
5,291
166,867 228,927 191,324
663 2,703 2,437
Brazil (2012: 6.69%) All America Latina Logistica Industrials Banco Santander Brasil ADS Financials Banco Santander Brasil Financials Grupo BTG Pactual Financials Grupo Pão de Açúcar (Preferred) Consumer Staples Itau Unibanco Holding (Preferred) Financials ADR Itau Unibanco Holding (Preferred) Financials Itausa Investimentos Itau Financials (Preferred) Lojas Renner Consumer Discretionary Marfrig Alimentos Consumer Staples Tractebel Energia Utilities Ultrapar Participacoes Energy Chile (2012: 0.62%) Embotelladora Andina 'A' (Preferred) Embotelladora Andina 'B' (Preferred) Embotelladora Andina Rep A ADR Embotelladora Andina Rep B ADR China (2012: 12.74%) AAC Technologies Holdings Anhui Conch Cement ASM Pacific Technology Baidu ADR Beijing Yanjing Brewery 'A'
567 3,593 4,601 __________ 77,758
5.44 0.10 0.14 0.06 0.30 ______
Consumer Staples
316,778
353
1,403
Consumer Staples
335,234
595
1,928
Consumer Staples Consumer Staples
32,264 125,987
465 2,903
Industrials Materials Information Technology Information Technology Consumer Staples
8,543
0.60 0.11 1.05 0.76 0.54 0.48
948 16,625 11,353
1,544 15,026 10,886
80,948
7,334
7,652
7,355,154
7,168
6,843
See accompanying notes to financial statements. 2
881 4,331 __________
273,449 5,549,915 988,124
All investments are common stock, unless noted otherwise.
0.49 1.30 0.68 0.32 0.30 0.73 0.21 0.43 0.37 0.04 0.25 0.32 ______
The Genesis Emerging Markets, Limited Partnership
SCHEDULE OF INVESTMENTS as at 30th June 2013 (unaudited) (continued)
Fair Value as a Percentage of Partners' Fair Value Capital US$000 (%)*
Number of Shares
Cost US$000
Consumer Staples Financials Consumer Staples Financials Telecom Services Financials
2,731,527 2,287,000 2,717,832 8,798,572 1,534,553 5,618,913
1,894 8,501 7,989 20,750 14,989 10,879
1,035 5,425 9,724 14,702 16,026 14,742
Materials Consumer Staples Utilities Consumer Discretionary Li Ning Consumer Discretionary Longfor Properties Financials Mindray Medical International ADR Healthcare Parkson Retail Group Consumer Discretionary Tencent Holdings Information Technology Tingyi Consumer Staples Want Want Holdings Consumer Staples West China Cement Materials Wumart Stores Consumer Staples
7,010,155 7,250,327 1,819,012 326,857
5,200 27,777 2,673 7,696
3,525 22,808 4,690 10,665
6,239,778
12,772
3,121
5,420,114 99,843 8,404,466
6,987 3,937 12,039
8,064 3,739 3,467
237,223
8,987
9,304
2,046,000 4,950,977 13,564,742 1,865,028
5,213 3,948 4,393 3,076
Investments in Securities
Industry
Common Equity and Equity Related Stocks (continued) China (continued) China Foods China Life Insurance China Mengniu Dairy China Merchants Bank China Mobile China Overseas Land and Investment China Resources Cement China Resources Enterprise China Resources Gas Group Ctrip.com International ADR
Colombia (2012: 1.03%) Bancolombia ADR Bancolombia
5,329 6,970 2,011 3,439 __________ 190,737
Financials Financials
110,448 483,400
6,284 2,697
Egypt (2012: 1.18%) Orascom Construction Industries Materials
450,469
Ghana (2012: 0.19%) Kosmos Energy
Energy
Greece (2012: 0.63%) Coca‐Cola Hellenic Bottling
Consumer Staples
0.44 0.46 ______ 0.90
11,697
12,163 __________ 12,163
0.85 ______ 0.85
238,765
2,766
2,426 __________ 2,426
0.17 ______ 0.17
409,572
11,491
9,560 __________ 9,560
0.67 ______ 0.67
All investments are common stock, unless noted otherwise.
See accompanying notes to financial statements. 3
13.35
6,608 __________ 12,848
6,240
0.07 0.38 0.68 1.03 1.12 1.03 0.25 1.60 0.33 0.75 0.22 0.56 0.26 0.24 0.65 0.37 0.49 0.14 0.24 ______
The Genesis Emerging Markets, Limited Partnership
SCHEDULE OF INVESTMENTS as at 30th June 2013 (unaudited) (continued)
Investments in Securities
Industry
Number of Shares
Cost US$000
202,365 3,712
16,026 114
Fair Value as a Percentage of Partners' Fair Value Capital US$000 (%)*
Common Equity and Equity Related Stocks (continued) Hungary (2012: 1.07%) MOL MOL ADR
Energy Energy
India (10.59%) Ambuja Cements Materials Andhra Bank Financials Axis Bank Financials Cognizant Technology Solutions 'A' Information Technology Container Corporation of India Industrials Dabur India Consumer Staples Genesis Indian Investment Diversified Company ^ Infosys ADR Information Technology Infosys Information Technology Kotak Mahindra Bank Financials Lupin Healthcare Consumer Maruti Suzuki India Discretionary Opto Circuits India Healthcare Shriram Transport Finance Financials Sun Pharmaceutical Industries Healthcare Tata Consultancy Services Information Technology Indonesia (2012: 2.31%) Bank Tabungan Pensiunan Indocement Tunggal Prakarsa Ramayana Lestari Sentosa Semen Gresik Persero Jordan (2012: 0.12%) Hikma Pharmaceuticals
15,138 139 __________ 15,277
1.07 0.15 0.03 0.32 0.83 0.02 0.13 5.27 0.90 0.64 1.27 0.40 0.49 0.00 0.12 0.40 0.56 ______
693,220 313,935 204,165 189,603
2,074 872 4,716 12,888
2,174 434 4,553 11,871
14,279 685,108 912,600
298 1,560 59,441
265 1,799 75,299
311,877
17,266
12,846
216,199
12,610
9,091
1,489,581 435,461 268,161
15,796 4,617 5,566
18,151 5,717 6,918
155,033 147,908 336,930 314,135
629 1,971 3,980 6,924
53 1,763 5,718 8,040 __________ 164,692
Financials Materials Consumer Discretionary Materials
Healthcare
412,000 7,342,802 22,825,268
173 9,789 1,721
2,397,358
2,627
106,680
1,017
All investments are common stock, unless noted otherwise.
See accompanying notes to financial statements. 4
1.06 0.01 ______
172 18,089 2,990 4,130 __________ 25,381 1,539 __________ 1,539
11.53 0.01 1.27 0.21 0.29 ______ 1.78 0.11 ______ 0.11
The Genesis Emerging Markets, Limited Partnership
SCHEDULE OF INVESTMENTS as at 30th June 2013 (unaudited) (continued)
Investments in Securities
Industry
Number of Shares
Cost US$000
685,264
69,906
Fair Value as a Percentage of Partners' Fair Value Capital US$000 (%)*
Common Equity and Equity Related Stocks (continued) Luxembourg (2012: 7.27%) Genesis Smaller Companies SICAV Diversified ^ Malaysia (2012: 0.82%) CIMB Group Holdings Lafarge Malayan Cement RHB Capital Mexico (2012: 4.85%) America Movil ADR Grupo Financiero Banorte Grupo Financiero Inbursa Megacable Holdings CPO Moctezuma Torex Gold Resources
Nigeria (2012: 1.93%) Afriland Properties FBN Holdings First City Monument Bank Guaranty Trust Bank Reg S GDR Guaranty Trust Bank Nigerian Breweries UBA Capital United Bank for Africa
Financials Financials Financials Financials Financials Consumer Staples Financials Financials
Russia (2012: 7.26%) Eurasia Drilling Reg S GDR Global Ports Investments Reg S GDR LSR Group Reg S GDR LSR Group
2,779,151 1,064,574 170,187
Telecom Services Financials Financials Consumer Discretionary Materials Materials
Energy
Poland (2012: 0.21%) Alior Bank
__________ 90,990
Financials Materials Financials
Mongolia (2012: 0.34%) Mongolian Mining Corporation
90,990
5,460 2,316 352
2,107,197 1,392,489 3,555,362 1,825,862
51,746 6,002 6,505 4,610
1,361,024 1,592,121
2,897 2,302
7,283 3,430 465 __________
6.37 0.51 0.24 0.03 ______
11,178
0.78
45,832 8,201 7,812 4,938
3.21 0.57 0.55 0.35 0.29 0.14 ______
4,211 2,007 __________ 73,001
5.11
10,441,995
7,029
1,939 __________ 1,939
0.14 ______ 0.14
3,039,200 15,244,455 82,375,922 514,095 67,735,170 9,762,914 8,160,402 103,603,512
0 1,321 4,526 2,863 6,248 4,371 116 6,522
41 1,679 2,397 3,450 10,127 9,377 63 5,163 __________
0.00 0.12 0.17 0.24 0.71 0.66 0.00 0.36 ______
32,297 Financials
172,953
3,226
Energy Industrials
180,172 189,107
5,170 2,848
6,726 2,517
Financials Financials
823,901 29,411
5,946 696
3,444 493
All investments are common stock, unless noted otherwise.
See accompanying notes to financial statements. 5
6.37 ______
4,647 __________ 4,647
2.26 0.33 ______ 0.33 0.47 0.18 0.24 0.03
The Genesis Emerging Markets, Limited Partnership
SCHEDULE OF INVESTMENTS as at 30th June 2013 (unaudited) (continued)
Investments in Securities
Industry
Fair Value as a Percentage of Partners' Fair Value Capital US$000 (%)*
Number of Shares
Cost US$000
16,590 248,400 435,640 96,759
1,774 23,644 7,063 1,819
3,821 29,684 5,720 607
433,349
5,885
2,719
73,935 1,467,938 11,034,590 688,898
548 6,689 24,632 15,692
Common Equity and Equity Related Stocks (continued) Russia (continued) Magnit Consumer Staples Novatek OAO‐Spons Reg S GDR Energy Novolipetsk Steel Reg S GDR Materials Novorossiysk Commercial Sea Port Industrials GDR Novorossiysk Commercial Sea Port Industrials Reg S GDR O'Key Group Reg S GDR Consumer Staples Raspadskaya Materials Sberbank RF Financials Consumer Staples X 5 Retail Group NV Reg S GDR South Africa (2012: 10.40%) African Bank Investments Anglo American Anglo American (London Listing) Bidvest Group Capitec Bank Holdings Discovery Holdings Pick 'N' Pay Holdings Pick 'N' Pay Stores SABMiller SABMiller (London Listing) Standard Bank Group
835 1,368 31,489 12,469 __________ 103,416
Financials Materials Materials Industrials Financials Financials Consumer Staples Consumer Staples Consumer Staples Consumer Staples Financials
2,045,232 2,567,326 504,475 749,132 79,309 61,615 205,307 1,250,675 898,636 210,572 1,330,048
South Korea (2012: 10.25%) Daum Communications
6,352 91,735 12,262 14,404 1,512 394 415 6,280 26,280 5,934 15,450
3,362 49,615 9,687 18,485 1,542 522 373 4,991 43,451 10,068 14,936 __________ 157,032
Information Technology Korea Electric Power Utilities Megastudy Consumer Discretionary Samsung Electronics (Ordinary) Information Technology Samsung Electronics (Preferred) Information Technology Samsung Fire and Marine Financials Insurance Shinhan Financial Group Financials
43,799
3,557
3,026
378,208 25,012
8,481 4,225
8,776 1,351
34,004
26,407
39,958
26,688
11,590
20,658
137,861
24,787
28,126
526,812
19,825
All investments are common stock, unless noted otherwise.
See accompanying notes to financial statements. 6
17,344 __________ 119,239
0.27 2.08 0.40 0.04 0.19 0.06 0.10 2.20 0.87 ______ 7.24 0.24 3.47 0.68 1.29 0.11 0.04 0.03 0.35 3.04 0.70 1.05 ______ 11.00 0.21 0.61 0.10 2.80 1.45 1.97 1.21 ______ 8.35
The Genesis Emerging Markets, Limited Partnership
SCHEDULE OF INVESTMENTS as at 30th June 2013 (unaudited) (continued)
Investments in Securities
Industry
Fair Value as a Percentage of Partners' Fair Value Capital US$000 (%)*
Number of Shares
Cost US$000
1,742,805
18,130
20,265
445,557
3,157
1,977
21,875,157
48,879
81,017
Common Equity and Equity Related Stocks (continued) Taiwan (2012: 5.82%) Mediatek RichTek Technology TSMC Thailand (2012: 3.24%) Bank of Ayudhya (Foreign) Big C Supercenter NVDR Big C Supercenter (Foreign) Robinson Department Store (Foreign) Siam Commercial Bank (Foreign) Thai Beverages TMB Bank (Foreign) Turkey (2012: 2.89%) Akfen Holding Anadolu Efes Biracilik Turkiye Garanti Bankasi Yapi ve Kredi Bankasi
Information Technology Information Technology Information Technology
__________ 103,259
Financials Consumer Staples Consumer Staples Consumer Discretionary Financials Consumer Staples Financials
21,893,475 474,301 746,899 1,905,000
19,129 3,492 4,409 3,708
1,262,521 35,925,168 38,082,210
6,161 7,370 3,133
25,059 2,852 4,491 3,747 7,002 16,712 2,750 __________ 62,613
Industrials Consumer Staples Financials Financials
727,954 1,025,642 3,162,372 3,664,472
2,662 8,412 11,869 7,462
1,747 14,884 13,800 8,338 __________ 38,769
1.42 0.14 5.67 ______ 7.23 1.76 0.20 0.31 0.26 0.49 1.17 0.19 ______ 4.38 0.12 1.04 0.97 0.58 ______
United Kingdom (2012: 2.38%) Tullow Oil
Energy
2,596,797
42,443
Zambia (2012: 2.47%) First Quantum Minerals
39,425 __________ 39,425
2.76 ______ 2.76
Materials
2,293,886
39,033
Zimbabwe (2012: 0.20%) Delta Corp
33,921 __________ 33,921
2.38 ______ 2.38
Industrials
2,914,760
1,776
4,081 __________ 4,081
0.29 ______ 0.29
Total Investments in Common Equity and Equity Related Stocks (Cost: US$1,347,909,000)
1,410,062
2.71
98.73
All investments are common stock, unless noted otherwise.
See accompanying notes to financial statements. 7
The Genesis Emerging Markets, Limited Partnership
SCHEDULE OF INVESTMENTS as at 30th June 2013 (unaudited) (continued)
Investments in Securities
Industry
Fair Value as a Percentage of Partners' Fair Value Capital US$000 (%)*
Number of Shares
Cost US$000
213,604
3,899
4,030
278,128
4,658
5,247
168,829
1,569
1,675
Participatory Notes Saudi Arabia (2012: 0.45%) Consumer Staples Almarai ‐ Deutsche Bank P Note (maturing 27th September 2016) ** Consumer Staples Almarai ‐ HSBC Bank P Note (maturing 24th November 2014) ** Saudi British Bank ‐ HSBC Bank P Financials th Note (maturing 27 March 2015) **
__________ 10,952
Total Investments in Participatory Notes (Cost: US$10,126,000) Total Investments in Securities (Cost: US$1,358,035,000)
0.28 0.37 0.12 ______ 0.77
10,952
0.77
1,421,014
99.50
Short Term Investments SSgA Prime Money Market Fund ***
4,549,408
4,549
4,549 __________ 4,549
0.32 ______ 0.32
Other Assets Total Liabilities
6,936 (4,283) __________
0.48 (0.30) ________
Total Partners' Capital
1,428,216 __________ __________
100.00 ________ ________
^ * ** *** ADR ADS CPO GDR NVDR Reg S 144A
Affiliated Investment Companies. Percentage is calculated based on Total Net Assets. Categorized as a Level II Security for the purpose of US GAAP (please refer to note 2). Registered investment company advised by State Street Global Advisors. American Depositary Receipt. A negotiable certificate issued by a U.S. bank representing a specific number of shares of a foreign stock traded on a U.S. stock exchange. American Depositary Share. The share issued under an American Depositary Receipt agreement which is actually traded. Ordinary Participation Certificates are not redeemable. Global Depositary Receipt. A negotiable certificate held in the bank of one country representing a specific number of shares of a stock traded on an exchange of another country. Non‐Voting Depositary Receipt. Security restricted from sale in the US under Regulation S of the Securities Act 1933. These securities maybe resold to investors outside of the US. Security exempt from Registration under Rule 144A of the Securities Act of 1933 and has been deemed to be liquid. These securities may be resold in transactions exempt from registration to qualified institutional buyers.
All investments are common stock, unless noted otherwise.
See accompanying notes to financial statements. 8
The Genesis Emerging Markets, Limited Partnership
STATEMENTS OF ASSETS AND LIABILITIES
as at 30th June 2013 (unaudited) and 31st December 2012 (audited)
2013
2012
US$000
US$000
ASSETS
Investments in securities at fair value (Cost: US$1,358,035,000
and US$1,264,562,000, respectively)
166,289
182,623
1,243,773
1,260,827
10,952
6,646
1,421,014
1,450,096
4,608
20,183
532
123
Due from brokers
4,222
54
Dividends and interest receivable
2,123
1,131
11,485
21,491
1,432,499
1,471,587
LIABILITIES
Payable to brokers
2,900
1,494
Management fee payable
1,044
1,116
1
1,001
Custody fee payable
212
346
Professional fees payable
126
210
4,283
4,167
1,428,216
1,467,420
1,432,499
1,471,587
Affiliated investment companies Marketable securities Participatory notes
Cash equivalents (Cost: US$4,608,000 and US$20,183,000, respectively) Cash denominated in foreign currencies (Cost: US$548,000 and US$125,000, respectively)
TOTAL ASSETS
Withdrawals payable
TOTAL LIABILITIES PARTNERS' CAPITAL TOTAL LIABILITIES AND PARTNERS' CAPITAL A zero balance may reflect actual amounts rounding to less than one thousand.
The Schedule of Investments are set out on pages 2‐8. See accompanying notes to financial statements. 9
The Genesis Emerging Markets, Limited Partnership
STATEMENTS OF OPERATIONS
for the periods ended 30th June 2013 and 30th June 2012 (unaudited)
2013
2012
US$000
US$000
INVESTMENT INCOME AND EXPENSES
Income:
Dividends (net of foreign withholding taxes of US$1,602,000
13,323
13,279
Interest
5
84
Other income
‐
39
and US$1,447,000, respectively)
13,328
13,402
Total Income
Expenses:
Management fees
6,674
6,299
Custody and administration fees
664
579
Professional fees
148
127
Other expenses
13
8
7,499
7,013
Total Expenses NET INVESTMENT INCOME
5,829
6,389
NET REALIZED AND UNREALIZED (LOSS)/GAIN FROM
INVESTMENTS AND FOREIGN CURRENCY:
Net realized gain from security and foreign currency transactions:
152,690
189,297
(141,448)
(132,924)
11,242
56,373
Net change in unrealized appreciation from investments
and foreign currency translations:
185,534
31,561
62,978
42,685
(122,556)
11,124
Proceeds from sales Cost of securities sold Net realized gain from security and foreign currency transactions
Beginning of period End of period Net change in unrealized appreciation from investments and foreign currency translations NET REALIZED AND UNREALIZED (LOSS)/GAIN FROM INVESTMENTS AND FOREIGN CURRENCY NET (DECREASE)/INCREASE IN NET ASSETS DERIVED FROM OPERATIONS A zero balance may reflect actual amounts rounding to less than one thousand.
See accompanying notes to financial statements. 10
(111,314)
67,497
(105,485)
73,886
The Genesis Emerging Markets, Limited Partnership
STATEMENTS OF CHANGES IN PARTNERS’ CAPITAL for the period ended 30th June 2013 (unaudited) Total
General Partner
Limited Partners
US$000
US$000
US$000
1,467,420
-
1,467,420
Capital contributions
70,976
-
70,976
Capital withdrawals
(4,787)
-
(4,787)
92
-
92
(105,485)
-
(105,485)
1,428,216
-
1,428,216
Partners' capital at beginning of period
Anti-dilution adjustment Net decrease in net assets derived from operations Partners' capital at 30th June 2013
for the period ended 30th June 2012 (unaudited)
Partners' capital at beginning of period
Total
General Partner
Limited Partners
US$000
US$000
US$000
1,283,889
713
1,283,176
2,500
-
2,500
(51,455)
-
(51,455)
205
-
205
73,886
41
73,845
1,309,025
754
1,308,271
Capital contributions Capital withdrawals Anti-dilution adjustment Net increase in net assets derived from operations Partners' capital at 30th June 2012
A zero balance may reflect actual amounts rounding to less than one thousand.
See accompanying notes to financial statements. 11
The Genesis Emerging Markets, Limited Partnership
STATEMENTS OF CASH FLOWS
for the periods ended 30th June 2013 and 30th June 2012 (unaudited)
2013
2012
US$000
US$000
CASH FLOWS FROM OPERATING ACTIVITIES
(105,485)
73,886
Adjustments to reconcile net increase/(decrease) in net assets derived from
operations to net cash provided by/(used in) operating activities:
(234,921)
(131,642)
Net (decrease)/increase in net assets derived from operations
Purchase of investment securities Proceeds from disposition of investment securities
152,690
189,297
Net change in unrealized appreciation from investments and foreign currency translations
122,556
(11,124)
Net realized gain from investments and foreign currency transactions
(11,242)
(56,373)
(4,168)
(4,835)
(992)
(1,770)
(72)
84
Increase in payable to brokers
1,406
111
(Decrease)/increase in custody fee payable
(134)
121
(84)
(40)
(80,446)
57,715
Proceeds from capital contributions
70,976
2,500
Payments for capital withdrawals
(5,696)
(59,250)
Net cash provided by/(used in) financing activities
65,280
(56,750)
(15,166)
965
20,306
11,582
5,140
12,547
Change in operating assets and liabilities: Increase in due from brokers Increase in dividends and interest receivable (Decrease)/increase in management fee payable
Decrease in audit fees payable Net cash (used in)/provided by operating activities
CASH FLOWS FROM FINANCING ACTIVITIES
Net (decrease)/increase in cash and cash equivalents Cash and cash equivalents including cash denominated in foreign currencies at beginning of period Cash and cash equivalents including cash denominated in foreign currencies at end of period A zero balance may reflect actual amounts rounding to less than one thousand.
See accompanying notes to financial statements. 12
The Genesis Emerging Markets, Limited Partnership
NOTES TO FINANCIAL STATEMENTS
for the periods 30th June 2013 (unaudited) and 31st December 2012 (audited)
1.
General Information The financial statements presented are unaudited condensed financial statements for the six month period ended 30th June 2013. They have been prepared in accordance with ASC270 – Interim Reporting. The unaudited condensed financial statements do not represent complete financial statements and should be read in conjunction with the financial statements for the year ended 31st December 2012 which were prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”).
2.
Fair Value Measurements FASB ASC 820: Fair Value Measurements and Disclosures require disclosures about investments that are measured and reported at fair value. Under ASC 820, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the “exit price”) in an orderly transaction between market participants at the measurement date. In accordance with ASC 820, the Partnership discloses the fair value of its investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure the fair value. The hierarchy gives the highest priority to readily available unadjusted quoted prices in active markets for identical assets (Level I measurements) and the lowest priority to unobservable inputs (Level III measurements) when market prices are not readily available or reliable. The guidance establishes three levels of the hierarchy as described below: Level I – Quoted prices are available in active markets for identical investments as of the reporting date. The type of investments included in Level I include listed equities and listed derivatives. As required by the guidance, the Partnership does not adjust the quoted price for these investments, even in situations where the Partnership holds a large position and a sale could reasonably impact the quoted price. Level II – Prices determined using other significant observable inputs. Observable inputs are inputs that other market participants would use in valuing a portfolio instrument. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk and others. Fair value is determined through the use of models or other valuation methodologies. Investments which are generally included in this category include corporate bonds and loans, investments in investment companies, less liquid and restricted equity securities and certain over-the-counter derivatives. Level III – Prices determined using significant unobservable inputs. In situations, where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect management's own assumptions about the factors market participants would use in valuing a portfolio instrument, and would be based on the best information available. Investments that are included in this category generally include investments in privately held companies, general and limited partnerships, interests in corporate private equity and real estate funds, and distressed debt. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an investment’s level within the fair value hierarchy may be based on the lowest level of input that is significant to the fair value measurement. Management’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment.
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The Genesis Emerging Markets, Limited Partnership
NOTES TO FINANCIAL STATEMENTS
for the periods ended 30th June 2013 (unaudited) and 31st December 2012 (audited) (continued)
2.
Fair Value Measurements (continued) The following is a summary of the inputs used as of 30th June 2013 in valuing the Partnership’s investments:
Investments, at fair value Common equity and equity related stocks* Investments in affiliated investment companies Participatory notes Short term investments Total investments, at fair value
Total US$000
Fair Value Measurements at 30th June 2013 Level I Level II Level III US$000 US$000 US$000
1,243,773
1,243,732
41
-
166,289 10,952 4,549 1,425,563
4,549 1,248,281
166,289 10,952 177,282
-
*See Schedule of Investments for additional detailed categorizations.
The following is a summary of the inputs used as of 31st December 2012 in valuing the Partnership’s investments:
Investments, at fair value Common equity and equity related stocks Investments in affiliated investment companies Participatory notes Short term investments Total investments, at fair value
Total US$000
Fair Value Measurements at 31st December 2012 Level I Level II Level III US$000 US$000 US$000
1,260,827
1,260,827
-
-
182,623 6,646 20,153 1,470,249
20,153 1,280,980
182,623 6,646 189,269
-
There were no significant transfers between Level I and Level II of the fair value hierarchy during either period. There were no investment activities associated with Level III financial instruments in 2013 and 2012. The Partnership estimates the fair value of certain alternative investments using the NAV per share of the investment without adjustment, as long as the NAV is calculated as of the reporting entity’s measurement date in a manner consistent with the specialized accounting guidance for investment companies. The Partnership has made no adjustments to the NAV per share of its investments in affiliated investment companies in measuring their fair value.
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The Genesis Emerging Markets, Limited Partnership
NOTES TO FINANCIAL STATEMENTS
for the periods 30th June 2013 and 30th June 2012 (unaudited)
3.
Financial Highlights The total return of the limited partners for the period ended 30th June 2013 was (6.67)% (30th June 2012: 5.84%) which includes the effect of the anti-dilution adjustment of 0.00% (30th June 2012: 0.01%).
Ratios to average partners’ capital: Net investment income* Total operating expenses*
2013
2012
0.78% 1.00%
0.93% 1.02%
* Annualised. The total return and financial highlights presented are calculated for all limited partners taken as a whole. An investor’s return may vary from these returns based on different management fees and the timing of capital transactions.
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The Genesis Emerging Markets, Limited Partnership
th
NOTIONAL UNITS
as at 30 June 2013 and 31st December 2012 (unaudited) 2013
2012
Category A Investors
554,280
525,413
Category B Investors
873,936
942,007
Category A Investors
815,700
721,665
Category B Investors
1,219,943
1,231,413
Category A Investors
679.51
728.06
Category B Investors
716.37
764.98
PARTNERS' CAPITAL (US$000)
NOTIONAL UNITS OUTSTANDING
NET ASSET VALUE PER NOTIONAL UNIT (US$)
See accompanying notes to financial statements. 16
The Genesis Emerging Markets, Limited Partnership
PERFORMANCE RECORD as at 30th June 2013 (unaudited)
Date 1993 30 Jun 31 Dec 1994 30 Jun 31 Dec 1995 30 Jun 31 Dec 1996 28 Jun 31 Dec 1997 30 Jun 31 Dec 1998 30 Jun 31 Dec 1999 30 Jun 31 Dec 2000 30 Jun 31 Dec 2001 29 Jun 31 Dec 2002 28 Jun 31 Dec 2003 30 Jun 31 Dec 2004 30 Jun 31 Dec 2005 30 Jun 30 Dec 2006 30 Jun 29 Dec 2007 29 Jun 31 Dec 2008 30 Jun 31 Dec
st
Percentage Change from 1 February 1993 Fund MSCI Net Asset EM Value (TR)
Category A Net Asset Value Per Unit (US$)*
Index MSCI EM (TR) (US$)
107.11 152.68
421.83 645.38
7.11 52.68
13.73 74.00
139.75 147.31
578.58 598.17
39.75 47.31
55.99 61.27
141.30 131.79
578.48 567.01
41.30 31.79
55.96 52.87
150.48 150.68
627.49 601.21
50.48 50.68
69.17 62.08
184.51 152.31
707.94 531.56
84.51 52.31
90.86 43.31
128.08 111.47
431.27 396.86
28.08 11.47
16.27 6.99
134.54 162.99
555.08 660.41
34.54 62.99
49.65 78.05
147.52 122.05
607.65 458.26
47.52 22.05
63.82 23.55
125.82 126.35
450.73 447.39
25.82 26.35
21.52 20.62
130.89 122.22
456.63 420.54
30.89 22.22
23.11 13.38
144.17 198.46
488.40 657.22
44.17 98.46
31.67 77.19
200.78 261.83
652.07 827.78
100.78 161.83
75.80 123.17
283.25 356.53
879.58 1,113.71
183.25 256.53
137.13 200.26
374.02 456.83
1,195.39 1,476.63
274.02 356.83
222.28 298.10
532.99 591.76
1,738.72 2,064.00
432.99 491.76
368.76 456.45
542.13 299.57
1,823.79 966.34
442.13 199.57
391.69 160.53
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The Genesis Emerging Markets, Limited Partnership
PERFORMANCE RECORD
as at 30th June 2013 (unaudited) (continued)
Index MSCI EM (TR) (US$)
Category A Net Asset Value Per Unit (US$)* 413.93 568.39
Date 2009 30 Jun 1,316.39 313.93 31 Dec 1,729.96 468.39 2010 30 Jun 558.16 1,625.46 458.16 31 Dec 707.40 2,062.04 607.40 2011 30 Jun 715.34 2,083.31 615.34 31 Dec 600.16 1,687.30 500.16 2012 29 Jun 635.21 1,756.77 535.21 31 Dec 728.06 2,001.60 628.06 2013 31 Jan 751.15 2,029.50 651.15 28 Feb 740.92 2,004.30 640.92 29 Mar 731.15 1,965.85 631.15 30 Apr 738.98 1,985.83 638.98 31 May 728.79 1,935.82 628.79 28 Jun 679.51 1,813.50 579.51 *Partnership Net Asset Value (NAV) Per Unit presented here represents the pro forma unitized performance calculation.
18
st
Percentage Change from 1 February 1993 Fund MSCI Net Asset EM Value (TR) 254.90 366.40 338.22 455.93 461.66 354.90 373.63 439.63 447.15 440.36 429.99 435.38 421.90 388.92
The Genesis Emerging Markets, Limited Partnership
ADMINISTRATION INVESTMENT MANAGER Genesis Asset Managers, LLP Heritage Hall, P.O. Box 225 Le Marchant Street, St. Peter Port Guernsey, GY1 4HY Channel Islands (Registered as an Investment Adviser with the SEC)
SUB-ADVISER Genesis Investment Management, LLP 21 Grosvenor Place, London SW1X 7HU United Kingdom (Regulated by the FCA and registered as an Investment Adviser with the SEC)
BANKERS AND CUSTODIAN State Street Bank & Trust Company One Lincoln Street Boston, MA 02111 USA
LEGAL COUNSEL Choate, Hall & Stewart LLP Two International Place Boston, MA 02110 USA Akin Gump Strauss Hauer & Feld LLP One Bryant Park New York, NY 10022 USA
AUDITORS AND CERTIFIED PUBLIC ACCOUNTANTS Ernst & Young LLP 560 Mission Street, Suite 1600 San Francisco, CA 94105 USA
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